Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

HBOS strength was assessed by regulators in 2002

12 February 2009 / by Rebecca Sargent

The strength of banking group HBOS was questioned as early as 2002, a statement released today by the Financial Services Authority (FSA) has revealed.

The statement has been released in response to Sir James Crosby's resignation as deputy chairman of the FSA. Mr Crosby stepped down yesterday amid furore over his role in the downfall of HBOS.

Sir James, formerly chief executive of HBOS, has been accused of firing Paul Moore, former head of risk at HBOS, on the basis that he raised concerns over the rapid growth of the banking giant's loan book.

The FSA statement confirms that these concerns were raised by Mr Moore in December 2004, and that the FSA" target="_blank">FSA concluded that the changes made by HBOS in response were appropriate.

The statement also revealed that the regulator raised concerns about the security of failed bank HBOS as early as 2002, but that it believed sufficient action had been taken to address these concerns.

"The FSA confirms that the allegations made by Mr Moore were taken seriously, and were properly and professionally investigated." The statement concluded. "It should also be noted that the FSA's concerns about HBOS's risk management framework considerably pre-dated the allegations by Mr Moore."

Commenting on the resignation of Sir James, the BBC's business editor Robert Peston said yesterday: "Sir James chose to resign because he wanted to protect the FSA from incessant criticism by media and opposition politicians."

Mr Peston added that, although HBOS and consequently Mr Crosby made an error of judgement, they did not break any laws or regulations: "So the lesson of hindsight is that Sir James made a disastrous judgement about HBOS's rate of expansion – but not that he committed a crime or a misdemeanour."

Speaking of the impact that HBOS's consequent collapse has had on the UK and its economy, Mr Peston concluded:

"And some would say that it's right that he quit, because all of us are paying for his misjudgement with the massive financial support that taxpayers have been forced to give HBOS."

Following the resignation of Sir James Crosby, Prime Minister Gordon Brown is due to face questions this morning over his choice of Mr Crosby as a key Government adviser.